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+{{htmlmetatags>metatag-keywords=(vehicle scrappage policy 2022,scrap old car India,RVSF registered vehicle scrapping facility,certificate of deposit scrappage,end of life vehicle ELV,road tax discount new vehicle,scrappage incentive,15 year old vehicle,20 year old private vehicle,parivahan scrap policy,vahan scrap portal,how to scrap car India,scrap bike India,vehicle scrap incentive 2026)&metatag-description=(Step-by-step 2026 guide to using the Vehicle Scrappage Policy — voluntarily scrap your end-of-life car or bike at an RVSF, claim the Certificate of Deposit, get up to 25% road tax discount on a new vehicle plus ₹15K manufacturer rebate. Plain language. With escalation path: RVSF helpdesk → Transport Department → CPGRAMS → RTI to STA Secretary.)}}
+====== How to use the Vehicle Scrappage Policy — complete 2026 guide ======
+{{ :social:auto:apply-vehicle-scrap-policy-2026.png?direct&1200 |How to use Vehicle Scrappage Policy 2026 — RTI Wiki citizen guide}}
+{{page>snippets:dpdp-banner}}
+<WRAP info>
+**Quick answer.** The **Voluntary Vehicle Fleet Modernisation Programme (V-VMP)** — popularly called the **Vehicle Scrappage Policy 2022** — lets you voluntarily scrap a private vehicle older than **20 years** (petrol/CNG/electric) or **15 years** (diesel), or a commercial vehicle older than **15 years**, at a government-licensed **Registered Vehicle Scrapping Facility (RVSF)**. The RVSF pays you the **scrap value of the vehicle** (typically ₹15,000-₹50,000 for a small car, ₹3,000-₹8,000 for a two-wheeler, depending on weight and metal price) and issues a **Certificate of Deposit (CoD)** in your name. You can use the CoD to claim a **25% road-tax concession** (private) or **15%** (commercial) on the new vehicle you buy within **2 years**, plus a **5% rebate from the OEM** (manufacturer) — most large carmakers offer additional ₹10,000-₹50,000 cash discount on top. Apply online at **vahan.parivahan.gov.in/vahan/scrappolicy** or walk into any RVSF.
+</WRAP>
+===== Lakshmi's story — "₹35K from the scrap yard, ₹40K off the new Alto" =====
+<WRAP center round box 80%>
+//Lakshmi Bai, 56, retired BMTC schoolteacher in Mysuru. Owner of a 2008 Maruti 800 (petrol) — bought in 2008 for ₹2.4 lakh, ran it for 17 years, then it failed Bharat-Stage emission and was practically unusable. In March 2026, the car turned 18 — well past the 15-year private petrol cap that Karnataka had brought forward via its 2024 notification.//
+> "I'd been using the car only for the morning vegetable run. Even that became a problem when the new fitness rules kicked in. The local mechanic offered ₹18,000 'cash, no paper'. My son said no — we'll do it the proper way. We logged on to vahan.parivahan.gov.in/vahan/scrappolicy, picked an RVSF in Bengaluru (Mahindra MSTC, 130 km away), uploaded the RC and ID, and booked an appointment for 12 March 2026. They sent a flatbed truck for ₹2,500 to pick the car up. The valuation came at **₹35,000** — ₹17,000 more than the local mechanic's offer. They cancelled the RC on Vahan in front of my eyes (Form 23B), gave me a printed Certificate of Deposit (CoD) the next day, and credited the ₹35,000 to my Canara Bank savings account in 4 working days. We then went to Maruti — they applied **5% manufacturer discount** plus **₹15,000 incentive** under the policy. The new Alto's road tax was reduced by **25%** (around ₹14,500 saved) on showing the CoD. Total: scrap value ₹35,000 + road tax saved ₹14,500 + Maruti rebate ₹40,000 = **about ₹89,000 of value** from a car the mechanic wanted to give me ₹18,000 for."
+—Lakshmi, April 2026
+</WRAP>
+By Q1 2026, India had **97 operational RVSFs** across 22 states (MoRTH press note, January 2026). Around **2.4 lakh vehicles** had been scrapped under the policy since launch in April 2022 — the bulk in the last 18 months after the **15-year unfit-vehicle deregistration** of central and state government vehicles became compulsory in April 2023.
+===== What this is — and who it's for =====
+The **Vehicle Scrappage Policy** is a Central Government scheme notified through the following overlapping rules:
+  * **Motor Vehicles (Registration and Functions of Vehicle Scrapping Facility) Rules, 2021** — set up the RVSF licence regime under §52 of MV Act.
+  * **Motor Vehicles (Vehicle Scrapping Facility) Amendment Rules, 2022** — formalised the Certificate of Deposit (CoD) and incentives.
+  * **Notification S.O. 3273(E) dated 25 July 2022 (MoRTH)** — set the road-tax concession at 25% private / 15% commercial; OEM 5% rebate via voluntary undertakings.
+  * **Notification S.O. 5394(E) dated 17 November 2023** — made fitness-test failure for vehicles older than the age cap (15 years private petrol in some states, 10 years diesel in NCR per NGT order) trigger automatic deregistration.
+You are eligible to scrap if you own a vehicle that is:
+  * A **private petrol / CNG / electric** car/two-wheeler **older than 15-20 years** (state-specific cap; Karnataka and Delhi have moved to 15 years; most other states retain 20 years).
+  * A **private diesel** vehicle **older than 10-15 years** (Delhi-NCR per NGT order: 10 years).
+  * A **commercial / transport** vehicle **older than 15 years** (uniform across India under MV Rules 1989 read with §39).
+  * A **government-owned** vehicle **older than 15 years** — mandatory scrappage since April 2023.
+  * A vehicle that has **failed automated fitness test** at an Automated Testing Station (ATS).
+  * A vehicle whose RC has been **cancelled / suspended** for any reason and you do not wish to revive it.
+You are **not** required to scrap if your fitness test passes — for private vehicles, fitness can be re-tested every 5 years even after the age cap (subject to state notification).
+===== Step-by-step process =====
+==== Step 1 — Check whether your vehicle is eligible ====
+  * Open https://vahan.parivahan.gov.in → "Know Your Vehicle Details" → enter RC number → check "Date of Registration".
+  * Add the relevant cap (15/20 years private; 15 years commercial). If older than the cap **and** fitness has lapsed/failed, you're inside the scrappage window.
+  * If still within fitness validity, decide whether the resale market or the scrap value will give better return — for old small cars, scrap value + tax concession + OEM rebate usually wins.
+==== Step 2 — Pick a Registered Vehicle Scrapping Facility (RVSF) ====
+  * Go to https://vahan.parivahan.gov.in/vahan/scrappolicy → "List of RVSF".
+  * Filter by state and city. As of April 2026, 97 RVSFs are operational — major operators include **Mahindra MSTC Recycling**, **Maruti Suzuki Toyotsu**, **Tata Motors-Re.Wi.Re**, **CERO (MMR Group)** and several state-PSU joint ventures (e.g., **DEKM** in Tamil Nadu, **IL&FS Environmental** in Maharashtra).
+  * Compare scrap-value offers — RVSFs publish their **per-kg LME-linked rates** monthly. Two-wheelers ~₹40-60/kg, small cars ~₹35-50/kg, SUVs/trucks ~₹30-45/kg of net body weight.
+==== Step 3 — Book an appointment online ====
+  * On the RVSF's portal (or the Vahan scrap module) → "Book Appointment" → upload RC + Aadhaar + PAN → choose date + pickup option.
+  * Most RVSFs offer **free or paid pickup** within a 100-150 km radius (₹1,500-₹3,500 depending on distance and vehicle weight).
+  * If your vehicle is mobile, you can drive it to the RVSF (carry RC, valid PUC if available, last insurance copy).
+==== Step 4 — Vehicle inspection + valuation at RVSF ====
+  * On arrival, the RVSF runs a brief inspection — odometer, identification, weight on platform scale, missing parts (engine, gearbox, catalytic converter all increase value; missing parts reduce).
+  * They generate a written **valuation offer** in your presence — accept or walk away.
+  * On acceptance, sign **Form CRC (Certificate of Vehicle Scrapping)** + a no-objection declaration.
+==== Step 5 — RC cancellation on Vahan ====
+  * The RVSF cancels your RC **on the Vahan portal in front of you** — Form 23B "Certificate of Deposit application" auto-flows to your jurisdictional RTO.
+  * Within **24-72 hours**, the RTO marks the RC as "Scrapped" — you can verify on vahan.parivahan.gov.in.
+  * Once RC is "Scrapped", **no fitness, no road tax, no insurance liability** continues — important for stopping insurance auto-renewal premiums.
+==== Step 6 — Receive scrap payment + Certificate of Deposit (CoD) ====
+  * The RVSF credits the scrap value to your bank account in **3-7 working days** (some pay cash up to ₹10,000 if you prefer; UPI/NEFT for higher amounts).
+  * The **Certificate of Deposit (CoD)** is issued in your name with a **unique 16-digit number**, valid for **2 years** from issue.
+  * The CoD is **transferable once** to a family member (spouse, parent, child, sibling) by writing to the RVSF + Form CD-T.
+==== Step 7 — Use the CoD when buying a new vehicle ====
+  * Go to any car/two-wheeler dealer of any OEM. Tell them you have a CoD.
+  * They enter the CoD number on their Vahan dealer portal — system auto-applies:
+      * **25% road-tax concession** (private vehicle) or **15%** (commercial) at registration of new vehicle.
+      * **5% manufacturer discount** (most OEMs — Maruti, Hyundai, Tata, Mahindra, Honda, Bajaj, TVS, Hero, Ola Electric have signed MoUs).
+      * Many states add **registration fee waiver** (₹600-₹1,500) on top.
+      * Optional **₹10,000-₹50,000 cash incentive** depending on OEM and model.
+==== Step 8 — Update insurance / Fastag / hypothecation closure ====
+  * If your old vehicle had a running insurance policy, claim **pro-rata premium refund** by filing Form CR + scrap certificate to insurer (refund usually ₹500-₹3,000 depending on remaining months).
+  * Cancel the **FASTag** linked to the old vehicle — see [[:apply-fastag-2026|Apply FASTag 2026]] for the cancellation process.
+  * If the old vehicle had an open hypothecation (rare for 15+ year old vehicles but possible), get an **NOC from financier** before scrap appointment — RVSF will not scrap a hypothecated vehicle without NOC.
+===== Sample fee + incentive + timeline table =====
+<code>
++----------------------------------+---------------------------------------+
+| Scrap value (paid by RVSF to you)| Two-wheeler:  ₹3,000  - ₹8,000        |
+|                                  | Small car:    ₹15,000 - ₹35,000       |
+|                                  | Sedan/SUV:    ₹35,000 - ₹70,000       |
+|                                  | LCV/Truck:    ₹50,000 - ₹2,50,000     |
+|                                  | (LME-linked, varies monthly)          |
++----------------------------------+---------------------------------------+
+| Certificate of Deposit (CoD)     | NIL fee. Valid 2 years.               |
+| issuance                         | Transferable once to family.          |
++----------------------------------+---------------------------------------+
+| Road-tax concession on NEW       | Private vehicle:    25% off           |
+| vehicle (against CoD)            | Commercial vehicle: 15% off           |
+|                                  | (One-time, life-time tax)             |
++----------------------------------+---------------------------------------+
+| OEM (manufacturer) rebate        | 5% of ex-showroom (most OEMs)         |
+|                                  | + ₹10,000 - ₹50,000 cash discount     |
+|                                  | on selected models                    |
++----------------------------------+---------------------------------------+
+| Registration fee waiver on new   | ₹600 - ₹1,500 (state-specific)        |
+| vehicle                          |                                       |
++----------------------------------+---------------------------------------+
+| Pickup / transport of old        | ₹1,500 - ₹3,500 (RVSF charge,         |
+| vehicle to RVSF                  | sometimes free within 50 km)          |
++----------------------------------+---------------------------------------+
+| Insurance pro-rata refund        | Depends on remaining months;          |
+| after scrap                      | typically ₹500 - ₹3,000               |
++----------------------------------+---------------------------------------+
+| RC cancellation (Form 23B)       | NIL fee on Vahan.                     |
++----------------------------------+---------------------------------------+
+| RTI on RVSF / scrap delay        | ₹10 by IPO. BPL = free.               |
++----------------------------------+---------------------------------------+
+</code>
+===== Common reasons the scrappage process gets stuck =====
+  * **No RVSF in your district.** Many states (especially in the North-East) still have only 1-2 RVSFs in the entire state. You either travel or pay a higher pickup charge.
+  * **Vehicle hypothecation not closed** — if your 18-year-old car still shows a financier on RC (because the bank closure NOC was never updated on Vahan), the RVSF cannot scrap. Get the closure noted on RC first via Form 35.
+  * **Vehicle not in the name of the person at the RVSF.** Owner mismatch (e.g., father is dead, son turns up) requires **legal heir transfer** first under Form 31.
+  * **CoD not generating** because the RVSF has not uploaded the scrapping certificate on Vahan within the 24-hour SLA. Push the RVSF; if silent, write to the State Transport Department.
+  * **Dealer says "OEM rebate not in our system"** — most OEMs run the rebate via a quarterly reimbursement. Insist on the dealer entering your CoD on the Vahan dealer portal — the road-tax discount applies even if OEM rebate is delayed.
+  * **Road-tax concession not applied** at new RC stage — happens if the dealer enters the CoD //after// RC has been generated. Insist on entry **before** registration.
+  * **Old insurance auto-renewed** because you forgot to flag the scrap — write to insurer with Form CRC + Vahan "Scrapped" status and demand cancellation + premium refund.
+  * **Two-wheeler scrap value too low** — the policy applies but two-wheelers genuinely fetch ₹3,000-₹8,000 because of light metal weight. The CoD value (road-tax concession on a new bike) is often more than the scrap cash itself.
+  * **State has not adopted the road-tax concession** — Tamil Nadu, Telangana and West Bengal were late adopters. Check your state's MV Tax notification before relying on the 25% benefit.
+===== If stuck — the escalation ladder =====
+==== Rung 1 — RVSF customer-care ====
+  * Every RVSF must publish a **grievance officer** name + phone + email on its premises and website. Mahindra MSTC: 1800-419-1330; Maruti Toyotsu: 1800-102-2222; CERO: 1800-419-2376.
+  * Best for: pickup delay, payment delay, valuation dispute.
+==== Rung 2 — State Transport Department ====
+  * Each State Transport Department has a **Scrappage Cell** since 2023. Usually reachable at scrap@<state>transport.gov.in.
+  * Best for: Vahan flag not updated, CoD number not generated, dealer not honouring road-tax concession.
+==== Rung 3 — CPGRAMS ====
+  * https://pgportal.gov.in → "Ministry of Road Transport and Highways" → "Vehicle Scrappage Policy".
+  * 30-day SLA. Visibility at MoRTH level — useful for cross-state issues (CoD issued in MP, vehicle being bought in Karnataka).
+==== Rung 4 — National Single Window for Vehicle Scrapping ====
+  * https://nssvscappolicy.parivahan.gov.in — one-stop tracking of scrappage applications. Login with mobile + Aadhaar; status visible end-to-end.
+==== Rung 5 — Right to Information (RTI) ====
+The Transport Department, MoRTH and the RVSF (only insofar as it acts as a delegated authority cancelling RCs on Vahan) come within the RTI Act 2005's reach. Note: a privately-owned RVSF is **not** itself a "public authority", but the **State Transport Authority** is — and that's where information about your file actually sits.
+**RTI helps here when:**
+  * Your CoD has not been generated despite scrapping completed weeks ago — RTI to the **PIO, State Transport Authority** for the file movement of CoD application.
+  * The 25% road-tax concession was not applied at new RC — RTI to the **PIO of the RTO that registered the new vehicle** asking for the basis of tax computation.
+  * Your old vehicle's RC is still showing "Active" on Vahan despite scrap — RTI for the date of cancellation entry + officer responsible.
+  * You suspect an RVSF undervalued your vehicle relative to the published LME-linked tariff — RTI to the State Transport Department for the RVSF's monthly tariff filing.
+  * Insurance refund denied citing "no scrap proof" — RTI to RTO for certified copy of Form 23B + Vahan cancellation log to send to insurer.
+See the dedicated guide: [[:rti-for-vehicle-rc-noc-delay|RTI for vehicle RC / NOC / scrap delay — copy-ready template]].
+**RTI does NOT help here when:**
+  * You disagree with the RVSF's valuation — that's a private contract; you're free to walk to another RVSF before signing CRC.
+  * The OEM has not given the 5% rebate — that's a voluntary commercial offer between you, dealer, and OEM. RTI cannot enforce a private discount.
+  * You want a higher scrap rate than market — RTI cannot change LME prices.
+  * You want to scrap a vehicle that has a pending court case / theft FIR — clear the legal status first; RVSF cannot scrap a vehicle with active police hold.
+===== FAQs =====
+**Q. My car is 17 years old but still drives well — must I scrap?**\\
+Not necessarily. Take the vehicle for **automated fitness test** at a registered ATS. If it passes the emission, brake, suspension and CO/HC tests, you get a fresh fitness certificate (5 years for private; 1-2 years for commercial). Scrappage is voluntary unless your state has issued a deregistration order for vehicles above the age cap.
+**Q. I sold my old car to a scrap dealer years ago — can I still claim the CoD now?**\\
+No. The CoD is issued only by an RVSF licensed under MV Rules 2021. A street scrap dealer (kabadi) cannot issue a CoD. If your old RC is still "Active" on Vahan even after physical scrap, you have a separate problem — apply to the RTO under Form 28 for cancellation.
+**Q. What about diesel vehicles in Delhi-NCR? Different rule?**\\
+Yes. Per **NGT Order 21 July 2016 + Supreme Court IA 345/2018**, diesel vehicles older than **10 years** and petrol older than **15 years** are not allowed in Delhi-NCR roads. Such vehicles are auto-deregistered if not transferred out. Scrappage policy benefits apply.
+**Q. Can I transfer my CoD to my son who is buying a new car?**\\
+Yes — once. Family members defined as **spouse, parents, children, siblings**. Apply to the RVSF with Form CD-T and ID proof of transferee. The 2-year validity continues from the original date of issue (does not reset).
+**Q. Is the OEM rebate available on EVs / hybrids?**\\
+Yes. All OEMs that have signed scrappage MoUs (including Tata Motors, Mahindra Electric, Ola Electric, Ather, TVS, Hero) extend the 5% rebate on EVs too — usually as ex-showroom discount. EVs additionally get **state EV policy incentives** (Maharashtra, Delhi, Karnataka, TN have separate EV subsidies).
+**Q. The road-tax concession of 25% — is that on new vehicle's lifetime tax, or annual?**\\
+It is on the **one-time lifetime tax** that you pay at time of new RC registration. Most states levy this between 6% and 18% of ex-showroom price. A 25% concession on a ₹6 lakh car at 8% lifetime tax = ₹12,000 saved.
+**Q. What if my old vehicle is registered in one state and I want to scrap it in another state where I now live?**\\
+Allowed under the policy. Carry the RC and a recent address proof. The CoD is portable across India; you can use it for a new vehicle in any state.
+**Q. Are tractors or construction equipment covered?**\\
+Currently **passenger vehicles, two/three-wheelers, light/medium/heavy commercial vehicles** are covered. **Tractors, harvesters, and construction equipment** are notified separately under the **2024 amendment** for goods carriers; agricultural tractors remain outside the policy as of April 2026 — there is a draft notification under consultation.
+===== Related on RTI Wiki =====
+  * [[:rti-for-vehicle-rc-noc-delay|RTI for vehicle RC / NOC / scrap delay — full template]]
+  * [[:apply-vehicle-registration-rc-new-2026|How to register a new vehicle (RC) — 2026 guide]]
+  * [[:transfer-vehicle-ownership-rc-2026|How to transfer vehicle ownership (RC) — 2026 guide]]
+  * [[:apply-fastag-2026|How to apply for FASTag — 2026 guide]]
+  * [[:rti-for-beginners|RTI in 12 simple steps — for first-time filers]]
+  * [[:helplines:start|All Indian government helplines — one master directory]]
+//Last reviewed: 26 April 2026 by RTI Wiki editorial team. Scrap valuation is LME-linked and changes monthly; RVSF list expands quarterly. Verify on vahan.parivahan.gov.in/vahan/scrappolicy or write to admin@bighelpers.in if you spot a stale figure.//
+{{tag>vehicle-scrappage-policy scrap-old-car rvsf certificate-of-deposit road-tax-discount end-of-life-vehicle vehicle-scrapping-rules-2021 morth parivahan vahan-scrap-portal rti-vehicle-scrap citizen-guide help-first 2026}}

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